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THE CLOUDY NATURE OF STRATEGY

Strategy is
problem solving in
unstructured
situations.
Lester Dignam

There is a gap
between the
rhetoric and the
reality of
SHRM.

John Purcell

Lynda Grattan

Strategy is

Strategy is a

emergent and
flexible.

pattern in a
stream of
activities.

Sean Tyson

Strategy consists
of illusions in the
board room.

Henry Mintzberg

Strategy is often
fragmentary,
evolutionary and
largely intuitive.
James Quinn

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STRATEGIC HRM DEFINED

Strategic HRM is the process of


defining how the organizations goals
will be achieved through people by
means of HR strategies and
integrated HR policies and practices.

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MODEL OF STRATEGIC HRM


Strategic HRM

Strategic management
strategic role of HR

HR strategies
overall/specific

Strategic choice

Strategic analysis

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VIEWS ON THE STRATEGIC BUSINESS PARTNER CONCEPT


My credibility depends on
running an extremely
efficient and cost-effective
administrative machine
If I dont get that right, and
consistently, then you can
forget about any big ideas.
HR Director

Give me a break! Its so demeaning.


How many people in marketing or
finance have to say they are a
partner in the business? Why do we
have to think that were not an
intimate part of the business, just
like sales, manufacturing and
engineering? I detest and loathe the
term and I wont use it.
Tim Miller, Standard Chartered Bank

The CIP thinks that we will all


be strategic business
partners, and were not, you
know. We have to deal with
day-to-day HR issues that
arise in the business.
Student practitioner

The term worries me to death. HR has to be


an integral and fundamental part of
developing the strategy of the business. I
dont even like the term close to the
business because, like business partner, it
implies we are working alongside our line
management colleagues but on a separate
track, rather than people management being
an integral part of the business.
Alex Wilson, BT

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HRs STRATEGIC ROLES

Formulate integrated
HR strategies

Contribute to the
development of
business strategies

Work with line


managers to
support the
achievement of
their business
goals

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SEVEN STEPS TO BEING STRATEGIC

Aware of
business
context

Understand
the
business

Appreciate
how HR
can add
value

See the big


picture

Act as
change
agent

Practice
evidenceMake
based
convincing
business management
case
for
innovation

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SO WHAT ABOUT HR STRATEGY?

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HR STRATEGY AREAS

Overall:
performance
engagement
the big idea
human capital
advantage
HRM process
advantage
etc

Specific:
organization
development
corporate social
responsibility
resourcing
talent management
learning and
development
employee reward
employee
relations
employee
well-being

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EXAMPLES OF OVERALL HR STRATEGIES

A strong focus on the


overall effectiveness
of the organization, its
direction and how it's
performing. There is
commitment to, belief
in, and respect for
individuals. New
Forest Council

The only HR strategy


you really need is the
tangible expression of
values and the
implementation of
values. West Water

Maintain
competitive
advantage by
continuing to
attract very high
calibre people.
Boots

Stimulate changes
on a broad front
aimed at achieving
competitive
advantage through
people. Pilkington
Optronics

We want GSK to be a
place where the best
people do their best
work. GlaxoSmithKline

Staff who are enjoying


themselves, are being
supported and
developed, and who
feel fulfilled and
respected at work, will
provide the best
service to customers.
Lands End

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BALANCED SCORECARD IN AN INTERNATIONAL CHARITY


Organizational effectiveness
perspective:
programme development
programme delivery
process development and
management
cost-effectiveness

Financial perspective:
income growth
enlistment and retention of
supporters
cost/income ratio

Stakeholder perspective:
impact on clients
relationships with key funding
agencies and supporters
development of brand
influence

People perspective:
leadership behaviour
talent management
learning and development
employee satisfaction
a great place to work

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HIGH-PERFORMANCE STRATEGY:
CORPORATION OF LONDON
Clear line of sight between strategic aims of the Corporation and its staff
Management sets goals for success and monitors performance
Leadership from the top and at all levels of management
Focus on promoting engagement and commitment
Performance management processes aligned to Corporation objectives
Capacities of people enhanced by comprehensive learning and
development programmes
People valued and rewarded according to their contribution

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DECLARATION OF STRATEGIC INTENT:


DELIVERY CHARITY

CARE

Achieve strategic integration match HR


policies and practices to the business
strategy
Plan coherent approaches to the
development of HR processes so that
they are interrelated and mutually
supporting
Focus on the needs to achieve flexibility,
responsiveness, quality and costeffectiveness in the delivery of HR
services
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CRITERIA FOR HR STRATEGIES

Aligned to corporate goals


Set out clear aims
Supported by business case
Take account of individual as well as
business needs
Contain realistic and achievable
plans for implementation

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STRATEGIC HRM TOOLKIT

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CONDUCTING A STRATEGIC REVIEW

Involve senior
management and
line managers

1.

Analysis

2.

Diagnosis

3.

Conclusions and
recommendations

4.

Action planning

Involve employees
and their
representatives

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HR STRATEGY GOALS: HOW DO THEY RATE?


Possible HR strategic objectives

Importance*

Effectiveness*

Support the achievement of organizational goals


Meet needs of employees
Develop a high-performance culture
Ensure that the organization is seen as a great place to work
Increase engagement and commitment
Recruit and retain talented people
Develop talented people
Reward people according to their contribution
Provide employees with a voice
Provide a good working environment
Other (specify)

* Scale: 10 = high 0 = low


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STRATEGIC HRM GAP ANALYSIS


What are the current and desired SHRM characteristics in your organization?
1

Effective high-performance work


system in place

No attempt made to encourage


high performance

Integrated talent management


programmes are operating
effectively

Talent management is haphazard


or ineffective

Sophisticated techniques are


used to recruit employees

A traditional approach is adopted


with regard to sourcing recruits
and selecting applicants

Focus on using blended learning


and development processes

Reliance on the delivery of


traditional training courses

A total reward approach is used


effectively

Reward programmes limited to


financial rewards

Only lip service is paid to


employee participation and
involvement

Employees given a voice on all


matters that concern them

Mark on the scale: X for current, O for desired eg:

High-quality HR practices

Poor-quality HR practices

HR IMPLICATIONS OF CORPORATE STRATEGIES


Corporate strategy

Implications for HR strategy

1.
2.
3.
4.
5.
6.

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ANALYSIS OF RESOURCING GOALS


Possible resourcing goals

Importance*

Effectiveness*

Match people resources to business requirements


Avoid unexpected deficits or surpluses of staff
Attract and recruit high-quality candidates
Minimize recruitment costs
Maximize recruitment intensity, ie high numbers of applicants
per vacancy
Increase predictive validity, ie the extent to which predictions of
suitability at the point of recruitment are achieved
Increase retention rates
Reduce cost of labour turnover

* Scale: 10 = high, 0 = low

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ANALYSIS OF TALENT MANAGEMENT GOALS


Talent management goals

Importance*

Effectiveness*

Define what is meant by talent in terms of competencies


and potential
Ensure that talent is treated as a key corporate resource
Develop a pool of talent that will provide a guaranteed
supply of highly qualified people
Provide for management succession
Rely primarily on growth from within, while recognizing
the need to bring in fresh blood from time to time
Identify those with talent and potential
Institute programmes to develop talent
Create a compelling employee value proposition
Develop the organization as an employer of choice
* Scale: 10 = high, 0 = low
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ANALYSIS OF LEARNING AND DEVELOPMENT GOALS


Learning and development goals

Importance*

Effectiveness*

Create human capital advantage by ensuring that the


organization has more skilled and competent people
than its competitors
Extend the skills base of the organization
Improve individual, team and organizational
performance
Attract and retain high-quality people by offering them
learning and development opportunities
Improve organizational flexibility by multi-skilling
Provide additional non-financial reward to people in
the form of growth and career opportunities
Reduce the length of learning curves to minimize
learning costs
Ensure that talented people are developed to achieve
their maximum potential
Provide line managers with the skills required to lead
and develop their people
* Scale: 10 = high, 0 = low
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ANALYSIS OF REWARD MANAGEMENT GOALS


Reward management goals

Importance*

Effectiveness*

Reinforce the achievement of organizational goals


Improve individual, team and organizational
performance
Recruit and retain high-calibre staff
Facilitate staff mobility
Achieve strong relationship between pay and
performance
Reinforce organizational values
Motivate and engage employees
Cost effective
Well-communicated and understood by employees
Managed effectively by line managers
* Scale: 10 = high, 0 = low
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ANALYSIS OF EMPLOYEE RELATIONS GOALS


Employee relations goals

Importance*

Effectiveness*

Build stable and cooperative relationships with employees


and, where present, their trade unions
Operate on a partnership basis with trade unions
Achieve engagement through employee involvement and
communication processes
Minimize conflict with employees and their unions
Adopt a high-commitment approach to develop mutuality
Maintain bargaining structures and negotiating procedures
that enable agreements to be reached smoothly

* Scale: 10 = high, 0 = low


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PRIORITIZATION OF HR STRATEGIES
Summary of HR
strategy

Business case

Timing

Responsibility for

1.
2.
3.
4.
5.
6.

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STRATEGIC HRM GUIDELINES


Be clear on what has to be achieved
and why
Ensure that what you do fits the
business strategy, culture and
circumstances of the organization
Aim for continuous improvement
evolution not revolution
Dont follow fashion do your own
thing
Keep it simple over-complexity is a
common reason for failure
Dont rush it takes longer than you
think
Assess resource requirements and
costs
Manage change involve,
communicate and train
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Michael Armstrong
email@michael-armstrong.eu

Art work by Youngs Design


Ian@youngsdesign.co.uk

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